Air

UTILITIES DELAY ACTION ON NSR PACTS PENDING FINAL TRANSPORT RULE

Some power companies are reluctant to pursue settlements with EPA over alleged violations of the Clean Air Act's new source review (NSR) program until the EPA finalizes its regulation to curb transported air pollution, sources say.

These utilities may be delaying action on the settlements at least in part because they are concerned that the pacts would create market disadvantages if their competitors were not subject to pollution-reduction requirements under the clean air interstate rule (CAIR) should it be delayed, sources following the discussions says.

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INDUSTRY GROUPS PETITION EPA TO EXTEND 8-HOUR OZONE DEADLINES

Several industry groups, led by the American Petroleum Institute (API), filed a Sept. 24 petition with EPA asking the agency to extend the deadlines for complying with its strict 8-hour ozone rule. The groups argue that EPA's new analysis of the rule shows many communities will fail to meet the standard on time, unless local areas require significant additional emission cuts from sources other than those already subject to federal rules that industry believes are unnecessary.

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HIGHWAY BILL EXTENSION INCLUDES 2.5-CENT ETHANOL PROVISION

A bill allowing continued funding for highway projects from Sept. 30 -- the end of the 2004 fiscal year -- to June 1, 2005, transfers 2.5-cents-per-gallon in excise taxes from ethanol sales out of the general fund and into the highway trust fund, retroactive to the beginning of the 2004 fiscal year.

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INSPECTOR GENERAL FINDS LITTLE PROGRESS ON SMOG REDUCTION

EPA's inspector general (IG) is out with a Sept. 29 report criticizing the agency and states for failing to reduce ozone precursor emissions in several major cities, prolonging urban problems with smog and related health problems.

The IG finds EPA has seriously delayed cleanup of dangerous air pollution by letting cities postpone legally required cleanups.

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STATE OPPOSITION AT ECOS MEETING KILLS MULTI-POLLUTANT RESOLUTION

State environmental commissioners have tabled a vote on a draft resolution that would have urged EPA to include minimum air emissions control requirement for all power plants in is upcoming clean air interstate rule (CAIR) due to strong opposition to the plan.

After a two-hour debate on the CAIR resolution Oct. 5 at the annual meeting of the Environmental Council of the States (ECOS) in Oklahoma City, OK, commissioners killed voting on the plan, which would have also provided strong backing for emissions trading.

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NEW ANALYSIS FINDS CAIR WILL SIGNIFICANTLY BOOST ELECTRICITY PRICES

A new study of EPA's proposed clean air interstate rule (CAIR) to reduce power plant emissions of sulfur dioxide (SO2) and nitrogen oxides shows the rule will cause electricity prices to rise 25 percent in 2010 and an additional 10 percent in 2015.

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SPIKE IN UTILITY SO2 EMISSIONS PROMPTS CRITICISM OF TRADING PROGRAMS

EPA's new report showing a 4 percent increase in sulfur dioxide (SO2) emissions from power plants in 2003 -- the first time acid rain emissions have increased since 1998 -- is leading environmentalists to question the benefits of politically popular emissions trading programs.

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UTILITIES ASK JUDGE TO DISMISS STATE CLIMATE CHANGE LAWSUIT

Five power companies filed joint and separate motions in federal court Sept. 30 asking that a lawsuit by state attorneys general (AGs) seeking greenhouse gas emission reductions be dismissed for lack of legal justification, including separation of powers, jurisdictional and standing grounds.

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KEY SENATORS, ACTIVISTS ATTACK RISK-BASED OFF RAMP IN AIR TOXICS RULES

Environmentalists and key senators are challenging the Bush administration's landmark air toxics rules for plywood producers and industrial boilers, fearing they set a dangerous precedent exempting facilities from Clean Air Act requirements by downplaying the risks posed by ambient emissions and sources "co-located" at the facility.

These critics warn if the rules stand, industries could petition EPA to apply the agency's risk-based methodology to existing rules and bog down the agency's air toxics program.

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WIND ENERGY EXPECTS MAJOR BOOST FROM NEW STATE, FEDERAL INCENTIVES

The wind energy industry is poised for a big growth spurt following the renewal of the long-awaited federal production tax credit through 2005 and New York state's adoption of a 25 percent renewable portfolio standard (RPS) by 2013, industry sources say.

"Wind producers have been waiting for the RPS to be established and the production tax credit at the federal level to be reinstated," says one consultant. "Because of the potential for the industry to expand so much in New York, this is a green light for the wind industry to begin siting potential wind farms."

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